Savings insurance vs fixed deposits vs T-bills vs Singapore Savings Bonds vs CPF / SRS: a like-for-like comparison

Savings insurance, fixed deposits, T-bills, Singapore Savings Bonds (SSB), CPF and SRS are not the same kind of thing: the first is an insurance contract, the middle three are deposits or government securities, and the last two are scheme accounts. When comparing them, you must first line up three dimensions, term, degree of guarantee and liquidity; otherwise asking "which pays more" is meaningless. For the difference in legal nature between savings insurance and fixed deposits, see the overview.

Definitions first: what each of the six instruments is

• Savings insurance (endowment): an insurance contract whose benefits consist of a guaranteed portion and (for participating plans) non-guaranteed bonuses, usually maturing after 10 years or more; see the overview.
• Fixed deposit: a bank deposit with an agreed term and rate, repaying principal and interest at maturity.
• 6-month T-bill: a short-term security issued by the Singapore Government at a discount and redeemed at face value at maturity, with the yield set by auction; it can be bought with cash, SRS or CPFIS money (MAS).
• Singapore Savings Bonds (SSB): government bonds for individuals with a term of about 10 years and coupons that step up each year, redeemable in any month.
• CPF: the statutory Central Provident Fund accounts, with interest rates set by the government by formula and subject to floors, used mainly for housing, healthcare and retirement.
• SRS (Supplementary Retirement Scheme): a voluntary retirement savings account whose contributions qualify for income tax relief; money in the account can be invested in deposits, bonds, funds or insurance.

Like-for-like comparison table

Item by item: term, liquidity and degree of guarantee

Term determines whether a comparison is fair. The guaranteed value of an endowment usually reaches or exceeds premiums paid only at maturity or the end of a stated policy year, whereas a T-bill lasts only 6 months. Comparing the illustrated maturity value of a 15-year endowment with a 6-month T-bill is comparing rates for different terms.

Liquidity differs even more. Withdrawing a fixed deposit early usually costs only the interest; an SSB can be redeemed in any month for face value plus accrued interest (MAS, 1 Oct 2026); surrendering an endowment early gets you only the surrender value, and the LIA and MoneySENSE guide to participating policies warns that early surrender may lose all or nearly all of the premiums paid. For policy loans, partial surrender and other routes, see surrender and liquidity.

Degree of guarantee must be read column by column. An endowment contract guarantees the guaranteed surrender value, the guaranteed maturity benefit and bonuses that have been declared and vested; the illustrated non-guaranteed portion may fall short of expectations. "Capital guaranteed" means that the guaranteed surrender value at the end of a stated policy year is not less than premiums paid, with conditions such as not altering the policy; see capital-guaranteed savings plans.

Protection schemes and current rates

The two protection schemes cover entirely different things:

Current published rates (a snapshot as at 23 Oct 2026; promotional rates usually change monthly, this site rechecks them on the 1st of each month, and the banks' and MAS's websites prevail):

Tax and the differences between scheme accounts

• Deposit and bond interest: according to IRAS, interest earned by individuals on deposits with approved banks in Singapore and on debt securities (such as bonds) is not taxable, except where held through a partnership or as trading stock (IRAS, page updated 15 Oct 2026).
• Savings insurance: premiums do not qualify for life insurance relief (IRAS, YA 2026); the income tax treatment of maturity benefits and payouts follows IRAS's position; see tax and reporting.
• SRS: the annual contribution cap is S$15,300 for citizens and PRs and S$35,700 for foreigners, and contributions qualify for income tax relief; withdrawals after the statutory retirement age are 50% taxable, while early withdrawals are 100% taxable plus a 5% penalty (IRAS, YA 2026). SRS money can be used to apply for SSBs (MAS, 1 Oct 2026).
• CPF: the use and withdrawal of money is subject to statutory conditions and interest rates have government-set floors; it cannot be moved around freely like a deposit.

Cross-border readers (tax residents of mainland China or Hong Kong) also need to confirm their reporting obligations for interest and policy proceeds in their own jurisdiction.

Why "endowments pay more than fixed deposits" is not a valid comparison

1. The terms do not match: fixed deposits and T-bills are priced over a few months, while an endowment is a contract of ten years or more; between them lie the term premium and reinvestment risk.
2. Guaranteed and non-guaranteed are mixed together: the two illustration rates in a benefit illustration are only illustrations (for what they are, see costs and the benefit illustration); only the guaranteed column can be compared directly with a fixed deposit rate.
3. The cost of illiquidity is left out: a fixed deposit can be withdrawn early, whereas early surrender of an endowment loses principal; whether you can hold to maturity is a precondition of any comparison.

A more sensible approach is to layer your money by purpose:

Savings insurance belongs only in the long-term layer, and only if you will not need the money during the premium term. For specific judgements for different groups, see who savings insurance suits. If you would like this applied to your own situation, you can register your needs through the contact options on this site.